Google AI Overviews Now Show Ads in 40% of Results: What Advertisers Must Know

Google's AI Overviews are no longer a novelty. They are a core part of how search works in 2026.

And they now include ads.

Earlier this year, ads rarely appeared alongside AI Overviews. As of November, they show in roughly 40% of AI Overview results, up from about 3% in January. This is not incremental growth. This is a fundamental shift in search advertising.

For advertisers who have built their entire strategy around traditional search results, the rules are changing.

What Are AI Overviews?

AI Overviews are Google's AI-generated answers that appear at the top of search results for many queries. Instead of showing you a list of links, Google synthesizes information and provides a direct answer.

For informational queries, this means users often get what they need without clicking through to websites. For commercial queries, it changes where the buying journey begins.

Google has been expanding AI Overviews throughout 2025 and 2026. They are now common across many query types in multiple countries. The feature is past the experimental phase and into mainstream deployment.

How Ads Appear in AI Overviews

Ads can appear above, below, or within AI Overviews. Both text ads and shopping ads from existing Search, Shopping, and Performance Max campaigns are eligible.

You do not need to create separate campaigns for AI Overview placements. If you are already running Search or Performance Max campaigns, your ads can show in AI Overviews automatically where relevant.

Google does not show ads in AI Overviews for sensitive categories including adult content, alcohol, gambling, finance, healthcare, and politics.

Current availability includes mobile and desktop in the US, Australia, Canada, India, Indonesia, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, Philippines, and Singapore.

Why This Matters for Search Strategy

The organic traffic implications of AI Overviews have been discussed extensively. Google is referring approximately 16% less organic traffic due to AI Overviews satisfying queries directly in search. For some informational queries, the decline is more severe.

But the advertising implications are equally significant:

Prime real estate has shifted. The most visible position in search is no longer the first organic result or even the first ad. It is the AI Overview. Ads that appear within or adjacent to that overview have different visibility than traditional search ads.

User behavior is different. Users interacting with AI Overviews are in a different mode than those scanning traditional results. They are reading synthesized content, not evaluating a list of options. How they respond to ads in this context may differ.

The funnel is compressed. AI Overviews attempt to answer questions fully, which means users may be closer to decision when they do click. The intent signal of an AI Overview click may be different from a traditional search click.

AI Max: Google's Answer Engine Ad Tool

Google has introduced AI Max, a suite of features that layers on top of existing Search campaigns. AI Max is designed specifically to help advertisers capture opportunities in AI Overview and AI Mode placements.

AI Max capabilities include:

Expanded reach: AI Max finds search queries beyond your current keywords, using AI to identify relevant opportunities you might not have targeted.

Automated copy tailoring: The system adjusts ad copy based on context and what it predicts will resonate with each user.

Landing page optimization: AI Max can send users to different landing pages based on their search, choosing the page most relevant to their apparent intent.

For advertisers accustomed to tight keyword control, AI Max represents a philosophical shift. You are delegating more decisions to the algorithm in exchange for reaching opportunities you would not have found manually.

"Expect Google to introduce dedicated controls, bidding strategies, and reporting specifically for AI Overview and AI Mode placements as these surfaces mature and usage increases."

What Advertisers Should Do

Ensure your campaigns are eligible. If you are running Search, Shopping, or Performance Max campaigns, your ads can already appear in AI Overviews. Verify your campaigns are active and well-optimized for the queries where AI Overviews appear.

Monitor performance by placement. As Google expands reporting capabilities, segment your data to understand how AI Overview placements perform versus traditional search placements. Look for differences in CTR, conversion rate, and CPA.

Test AI Max features. If you have been hesitant to adopt Google's AI-powered campaign features, reconsider. AI Max is specifically designed for the AI Overview environment. Manual-only approaches may miss opportunities.

Adjust your content strategy. If AI Overviews are reducing organic traffic, consider whether paid placement in those overviews can replace lost visibility. The channel may shift, but the opportunity to reach searchers remains.

Prepare for more automation. Google's direction is clear. More AI, more automation, less manual control. Advertisers who can work effectively with these systems will have advantages over those fighting them.

The Broader Context

AI Overviews ads are part of a larger shift in how Google approaches advertising in an AI-first world. The company is also testing ads in AI Mode, their dedicated conversational AI experience, which surfaces ads for complex, multi-part queries.

Google's challenge is balancing AI-generated answers with advertising revenue. Too many ads degrades the user experience. Too few ads threatens the business model. The current 40% figure represents their current calibration, which will likely evolve.

For advertisers, the opportunity is to be present in these new surfaces as they develop. Early learners will have advantages as Google expands capabilities and competition intensifies.

Performance Max and the AI Advertising Stack

Performance Max campaigns are particularly well-positioned for the AI Overview era. These campaigns already operate with maximum algorithmic control over placements, creative, and targeting. They are designed for an environment where Google's AI handles distribution decisions.

The integration between Performance Max, AI Max, and AI Overview placements creates a unified system where Google optimizes your advertising across all available surfaces, including surfaces that did not exist when you launched your campaigns.

The Bottom Line

AI Overviews with ads are the reality of search in 2026. This is no longer a test or an experiment. Google has committed to this direction, expanded availability globally, and integrated advertising into the experience.

Advertisers have two choices: adapt strategies for this new environment, or watch as competitors capture opportunities in spaces you ignored.

The fundamental skill remains the same: reaching the right people with the right message when they have relevant intent. The surfaces and mechanics are changing, but the goal has not.

We help clients navigate Google's evolving ad products including AI Overviews and AI Max. Contact us to discuss how these changes affect your search advertising strategy.

FAQ

Do I need separate campaigns for AI Overview ads?

No. Ads from existing Search, Shopping, and Performance Max campaigns are automatically eligible to appear in AI Overviews where relevant.

Can I control whether my ads appear in AI Overviews?

Currently, there are no dedicated controls to opt in or out of AI Overview placements specifically. Your ads will appear where Google's algorithm determines they are relevant.

How do AI Overview ads perform compared to regular search ads?

Google has not released comprehensive performance data. Early reports suggest different user behavior patterns, but specific CTR and conversion comparisons vary by industry and query type.

What is AI Max and should I use it?

AI Max is Google's suite of AI features for Search campaigns that helps find queries beyond your keywords and optimize creative and landing pages automatically. If you are advertising in categories where AI Overviews are common, AI Max can help capture those opportunities.

Are AI Overviews replacing traditional search results?

For many queries, AI Overviews appear above traditional results but do not replace them. However, for informational queries, users may get their answer from the overview without scrolling to traditional results. Commercial queries still typically show a mix of overview content and traditional listings.